Jetihad is born. Jet Airways completes 24% stake sale to Etihad Airways

Abu Dhabi-based Etihad Airways and Mumbai-based Jet Airways today announced that they have closed the transaction of a 24% equity stake by Etihad Airways in Jet Airways.

Jet Airways' Boeing 777-300ER

In a release they said

"All requisite Indian regulatory approvals had been obtained by November 12th, 2013. Jet Airways has, on November 20th, 2013, issued and allotted 27,263,372 equity shares of a face value of Rs. 10 each at a price of Rs. 754.7361607 per equity share on a preferential basis to Etihad Airways.

Consequent to the above allotment, the paid up share capital of Jet Airways stands increased to 11,35,97,383 equity shares of Rs. 10 each. Following this issue and allotment of the said equity shares on a preferential basis to Etihad Airways, Etihad Airways holds 24 per cent of the post issue paid up share capital of Jet Airways (on a fully diluted basis)."

Mr. James Hogan, CEO, and Mr. James Rigney, CFO of Etihad Airways have been appointed as additional directors on the board of directors of Jet Airways as from November 20th, 2013.

Mr. Goyal and Mr. Hogan confirmed that the collaboration between the airlines would commence immediately with a view to delivering network and service benefits to customers as soon as possible.

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A detailed behind the scene insight on the making of the Jet Etihad deal

by Devesh Agarwal

The aviation enthusiast community may not have too much respect for The Economic Times newspaper when it comes to technical accuracy when reporting aviation related stories, but hats off to a great article that goes in to the depths on how the deal for a 24% stake by Etihad Airways in Jet Airways was negotiated and struck.

The article goes behind the scenes, giving insight in to the motivations, events, players, and tactics involved in the negotiations. A definitely must read.

One crucial observation, Jet Airways first met Etihad in June 2012, a full three months before the government announced the new liberalised policy of allowing foreign airlines to invest in Indian carriers. Quite clearly, Mr. Naresh Goyal's connections served him well.

Read the article here.

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As Competition Commision clears Jet-Etihad merger, it is goodbye Jet and hello Jetihad

by Devesh Agarwal

On Tuesday, beleaguered Indian carrier, Jet Airways cleared its final hurdle in its $397 million quest to sell a 24% stake to Abu Dhabi based Etihad Airways PJSC, when the Competition Commission of India (CCI), cleared the deal paving the way for the Naresh Goyal promoted Jet to receive desperately needed cash from the deal.

The Union cabinet had already cleared the deal last month on October 4, the CCI approval now means that the deal, the first since the government announced a liberalised policy allowing foreign airlines to invest in domestic carriers, can be fully operational within, as little as, the next fortnight.

Keeping public sentiment on the fear of the two airlines monopolising the India Abu Dhabi routes, the CCI has cautioned

"This approval should not be construed as immunity in any manner from subsequent proceedings before the Commission for violations of other provisions of the Act. It is incumbent upon the parties to ensure that this ex-ante approval does not lead to ex-post violation of the provision of the Act,”

This deal could not have come a moment too soon for Jet Airways, which is literally running on fumes. The airline which is reeling under a debt of almost $2 billion, desperately needs cash to retire high cost debt.

In addition to the cash from the stake sale, Etihad has purchased Jet's landing slots at Heathrow, will buy the airline's frequent flier programme JetPrivilege, and will provide/arrange for loans under soft and discounted rates, which will used by Jet Airways to retire its high cost debt.

The measure of financial need at Jet is visible in the performance of the carrier in the second quarter of this fiscal, where it posted an eye-popping loss of nearly Rs. 1,000 Crores.

Jet Airways A330-200s grounded at New Delhi IGI airport. Photo copyright Devesh Agarwal.

The operations performance analysis show an airline which is seriously lacking clarity. The international operations which were the bulk of revenue, have seen much of the airline's Airbus A330-200 fleet grounded as non-profitable routes were withdrawn or curtailed. In the second quarter alone, the airline lost over Rs. 123 Crore ($205 million), or the cost of one new wide-body,  just keeping the aircraft grounded.

The airline was expecting to lease a couple of aircraft to Etihad, but could not do so due to "various reasons". Can we attribute this lack of clarity to the transition in operational control from Jet to Etihad?

Etihad is extracting its pound of flesh for its money. While both Jet and Etihad may publicly say otherwise, there is a clear re-alignment and re-organisation of operational strategy and divestiture of control to Etihad. Senior executives have resigned, including the CEO Nikos Kardassis, and Vice President Network Planning K.G. Vishwanath.

Recently the Business Standard reported that Rajeev Nambiar, sales head of Etihad, is likely to replace Sonu Kripalani, Jet’s vice-president (Sales). We had Bangalore Aviation had earlier reported the expected departure of Jet's Chief Commercial Officer, Sudheer Raghavan. The Business Standard report confirms our report saying

In another move Willy Boulter, Etihad’s vice-president (commercial and network planning), is likely to take over as Jet’s chief commercial officer, replacing Sudheer Raghavan. Sources say Raghavan is leaving the organisation, as his powers and responsibilities are being curtailed.

The commercial cooperation agreement (CCA) between the two airlines places enormous burden on Jet, requiring it to re-route its profitable and short-haul direct India-Dubai and India Sharjah routes via Abu Dhabi. One has to ask, why would someone replace a two or three hour direct flight with a four to five hour one-stop one? The CCA further goes to require Jet to re-route most of its international destinations via Abh Dhabi, with the exception of London, South-East Asia, and Australia-New Zealand.

Reports are of Jet mounting flights to Newark, Toronto, and Chicago via Abu Dhabi. Agreement aside, Abu Dhabi Chicago is almost 7,300 miles just 50 miles less than New Delhi New York, a route, that the Jet Airways Boeing 777-300ER was not flying non-stop due to its ultra-heavy first class suites. Is Jet going to modify its cabins to achieve Etihad's dreams?

The agreement will also require Jet to dilute its scissor hub at Brussels, not operate flights in competition to Etihad, with the reverse not being true, not operate and discontinue existing bilateral relations and code-shares with other airlines which may be in competition to Etihad.

In another Business Standard report

According to the terms of the CCA-a copy of which has been reviewed by Business Standard-Jet would have to route its services from India to Sharjah and Dubai through Abu Dhabi as soon as it becomes economically viable.

In what may additionally water down Jet's operations out of its hub in Brussels (Belgium), the Indian airline would have to develop Abu Dhabi as an exclusive hub for flights to North America, South America, Africa and the United Arab Emirates ('exclusive territories'). Canada too would be included in the list of "exclusive territories" once relevant amendments are made to bilateral air-services agreements to permit Jet to fly to Toronto via Abu Dhabi. Jet currently flies to New York and Toronto via its hub in Brussels.

The agreement, however, says exceptions can be made to allow Jet to mount non-stop operations between India and destinations in the 'exclusive territories' if Etihad agrees that it would be economically viable to do so. A Jet spokesperson, while declining to share details of specific plans, says, "As the Jet and Etihad alliance is being examined by the concerned regulatory authorities and their consequent approvals are awaited, it would be inappropriate for Jet to respond at this stage."

The CCA also restrains the Indian carrier from entering into code-share arrangements with third-party airlines, the impact of which may result in Abu Dhabi being bypassed as a hub for traffic to and from the exclusive territories.

According to the terms of the CCA, Jet would have to exit existing joint ventures or code-share arrangements with other airlines which can adversely impact business prospects of the alliance it has forged with Etihad. Jet can form code-share arrangements with third parties to destinations within exclusive territories not served by Etihad or its affiliates - but only till such time as they do not commence operations on these routes.

The two airlines have set up a coordination committee to "study" and implement "better cooperation" between themselves.

Quite clearly, it is goodbye Jet Airways and welcome to Jetihad Airways.

What are your thoughts? Share a comment?

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Jetihad deal finally clears FIPB, but still has long way to go

by Devesh Agarwal

The 24% stake sale by India's Jet Airways to Abu Dhabi's Etihad Airways has been finally cleared by India's Foreign Investment Promotion Board (FIPB), albeit with conditions, after the share holder agreement (SHA) was changed to incorporate the apprehensions of the government of India.

One of the conditions imposed by the FIBP requires prior Government approval before making any changes in SHA. The revised SHA also calls for arbitration under Indian law and not English law as earlier proposed.

The Jet Airways board of directors will have 12 members. Promoter Naresh Goyal with 51% shareholding, post the sale, will have four representatives. Etihad which has less than half of Goyal's holding, 24%, will have two with the right to nominate the Vice Chairman, and there will be six independent directors, all Indians. As Chairman Goyal will also have veto power, though one has to see how he will use it.

A revised Commercial Cooperation Agreement (CCA) has also been submitted and approved, as it says the principal place of business would be Mumbai. Plans for shifting, operations, revenue, and network functions to Abu Dhabi have been scrapped.

Jet has already sold its London Heathrow slots to Etihad to realise desperately needed cash to lower ballooning debt levels. You can also read our initial analysis of the deal. You can also read a quick recap of the Jetihad deal time-line here.

The Jetihad deal still needs three more approvals. The Competition Commission of India (CCI) which is examining the deal, since the CCA calls for Jet to terminate existing code-share and partnership agreements on routes operated by Etihad.

Following the CCI, the deal will go to the Cabinet Committee on Economic Affairs (CCEA) since it involves a foreign direct investment (FDI) of more than 1,200 crore. After which the deal will come to the ministry of civil aviation for approval under the Aircraft Rules, 1937.

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Your opinion: Question of the week: Is Jet Airways too financially weak? What should existing investors do?

by Devesh Agarwal

Majority of Jet's A330 fleet parked at New Delhi's IGI airport

In what is not a very uncommon development, The Economic Times reports, India's financial markets' watchdog, the Securities Exchange Board of India, better known as SEBI, has written to the Foreign Investment Promotion Board (FIPB), the approver of FDI proposals, expressing concern on the agreement to sell a 24% stake by Jet Airways to Etihad Airways PJSC. SEBI feels that the agreement structure allows India's largest private airline by revenue, to pass into foreign hands, which is not allowed as per the existing law.

Over the last one month the deal has been question by various ministries, regulators, boards, authorities, stake-holders, and members of Parliament, amongst others. Putting aside partisan motives, one obvious fact is emerging; the agreement appears to be extremely lop-sided in unduly favouring Etihad. You can read our earlier analysis highlighting some of the lop-sided provisions of the agreement.

While the debate on these provisions continues, we want to question the financial condition of Jet Airways itself. Without doubt, the debt levels of Jet Airways are high enough to be classified as scary.

However, the question at hand is; what insight does this agreement offer in to the situation at the Indian carrier? Is the situation so dire that the promoters of Jet willing to let go of their airline for a mere $379 million? or did Mr; Hogan's team simply out-negotiate that of Mr. Goyal's?

As its possible control of Jet Airways is whittled away, by the regulators, at point would Etihad walk away from the deal? There are already rumblings, that come July 31, the first deadline for the deal, Etihad might reduce the amount of premium it is willing to pay for Jet. In which case, will Goyal still be interested?

And surely, exiting investors must be watching the scene nervously and wondering what should they do? Hold on? Or jump ship?

Share your thoughts via a comment.

Disclosure: Devesh Agarwal is a shareholder in Jet Airways.

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Have your say: Question of the week: Will the Jet Etihad deal fructify? Will Jet survive?

by Devesh Agarwal

We welcome your feedback and comments on the Jet-Etihad deal.

Without a doubt the humongous increase in seat capacity offered to the Abu Dhabi government by India has some quid-pro-qua links to the Jetihad deal. There is also talk that the bilaterals seat increase was to pacify the UAE government after their telecom company allegedly lost over $1 billion in the recent 2G scam, and get foreign investment flowing in to India from that country.

Regardless of the reasons, the new proposed bilateral air services agreement (ASA) has come under severe flak from many political quarters. At the focal point of attacks is the Prime Minister, who had given his approval to the Group of Ministers (GoM) comprising P. Chidambaram (Finance), Anand Sharma (Commerce), Salman Khurshid (External Affairs) and Ajit Singh (Civil Aviation), to proceed and conclude the ASA.

Dr. Manmohan Singh is regarded as an honourable man, but his reputation has taken a hit following the 2G telecom scam and Coalgate, where national resources like spectrum and coal were doled out to political supports for cheap. A weak Congress, facing a multitude of elections, is now desperately trying to protect the image of the Prime Minister and the memorandum of understanding (MoU) signed with the UAE government on the ASA is now being questioned. To help weather the political story, give cover to the Prime Minister, and justify the deal, a note from the civil aviation ministry is being prepared for perusal and overall approval of the MoU, the Cabinet.

The suave and politically connected Naresh Goyal is reportedly pacing the corridors of power, and doing all he can to keep the Jetihad deal alive.

On the side, news reports indicate Etihad is waiting for the outcome of the cabinet meeting, and the decision on the MoU. Indirectly, it has been reported, that if it does not get the massive increase in traffic rights, Etihad make walk away from the deal.

Jet is facing a debt of over 12,000 Crore ($2 billion), higher than even Kingfisher Airlines, and its very survival is at stake.

Do you think the Jetihad deal will fructify? Under what circumstances? If the deal does not fructify, will the baniya Naresh Goyal be able to prevent Jet Airways experiencing the same fate as Kingfisher Airlines?

Share your thoughts and views via a comment.

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Vested interests shaping government policy helped AirAsia partner Tatas too

by Devesh Agarwal

Image courtesy Wikipedia

Aviation insiders have known for many years what AirAsia boss Tony Fernandes dared publicly state the day before yesterday, after his meeting with civil aviation minister Ajit Singh. Vested interests have shaped, nay, distorted Indian civil aviation policy.

One of the more shameful rules of Indian civil aviation is the policy of allowing Indian carriers to operate international flights only after they have been in operation for five years, and have a fleet of at least 20 aircraft.

The worst aspect of this rule is that it applies only to Indian carriers. So while even newly formed airlines from our neighbours like Mihin Lanka, flyDubai, etc., could fly to India, a perfectly capable IndiGo or SpiceJet were forced to watch their competitors establish themselves, while they themselves had to sit idly by. Even today GoAir is unable to operate international flights since its fleet is smaller than the mandated 20 aircraft, forcing the airline to lobby and seek an exemption from the rule.

Image © Devesh Agarwal. All rights reserved.

The blind ambition to operate international flights before it completed the five year requirement, was one of the driving reasons for Vijay Mallya promoted Kingfisher Airline's disastrous acquisition of the loss-laden Air Deccan, which is now acknowledged as a major reason for the ultimate demise of the liquor baron's airline.

We completely agree with Fernandes that this bizarre rule has held back Indian airlines while other airlines in the region have formed and grown to become large stable businesses, thus causing a loss to the nation.

Fernandes appeared to confirm insider information when he used the name "Naresh", most likely referring to Naresh Goyal, the politically super-connected boss of Jet Airways, who was the "vested interest" behind this bizarre policy decision.

Fernandes though, should remember history and use caution when blaming "vested interests" for distorting government policy. Back in 2006, his partners in AirAsia India, the Tatas, actively lobbied the finance departing to apply a different yard-stick from the then national auto policy, and made their fledgling Indica car qualify as a "small car" and obtain lower excise duty benefits which it was otherwise not be entitled to, while its competitors would.

A 2006 report explains

While the Auto Policy defines a small car as being up to 3.8-metre long and the 6-digit excise notification in the official tariff book places a cap of 1,000 cc on the engine capacity for a car to qualify as 'small', the Budget made cars up to 4 metre in length and having an engine capacity of 1,200 cc (petrol) and 1500 cc (diesel) eligible for the lower, 16% excise slab.

This means, had the finance minister stuck to the existing definition, petrol models such as Hyundai Santro and Maruti WagonR would not have become eligible for lower excise. Under this definition, the upcoming diesel variants of Swift and Getz will also become eligible for lower excise since the engine capacity cap for diesel versions has been placed at 1,500 cc. But, just a few weeks after the budget was passed, two major automobile companies have begun lobbying for extending these concessions further.

Officials confirmed that two companies, including the Ratan Tata-led Tata Motors, have sought further relaxation.

Fernandes' outburst is understandably,  also vested. After all, he is responsible to the shareholders of his business for delivering results. One way for his new venture AirAsia India to quickly grow, would be to operate internationally.

Today AirAsia cannot carry passengers all the way from south east Asia to the middle-east on its narrow body A320s, since the distance it too great. At the same time. some of the routes would not have enough traffic to fill the wide-body A330s of AirAsia X. But if AirAsia India flies overseas, it can be fed by its sisters AirAsia, and Thai AirAsia who would bring passengers to the Indian hubs and transfer them on their Indian sister along with Indian passengers for the onward journey to the middle-east.

Is this a case of the pot calling the kettle black? Or is Tony Fernandes genuinely interested in universal change to fair play rules? Share your thoughts via a comment.

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Jetihad casualty. Nikos Kardassis resigns as Jet CEO

Ever since the Jetihad deal was announced in late April, where Jet agreed to sell 24 per cent stake for Rs. 2,042 crore to Etihad Airways, we industry watchers were waiting to see when the casualties of senior management at Jet Airways would commence. Officially Etihad will get three seats on the Jet board, including the CEO, but it is widely expected that Etihad will place sympathetic officers, across most of the senior management at Jet.

In a filing with the Bombay Stock Exchange, Jet informed that its chief executive Nikos Kardassis has resigned effective June 5, and present chief operating officer Capt. Hameed Ali is the interim CEO.

This was the second stint for Kardassis having returned to Jet on October 15, 2009 as acting CEO after Wolfgang Prock-Schauer quit, and appointed CEO from May 20, 2010. Kardassis served from 1994 to 1999

Media reports claim under the deal Etihad reportedly demanded a change in the management under the deal, including removal of promoter Naresh Goyal's wife, Anita Goyal, who apparently actually ran the airline.

For the quarter ended March, Jet has reported increased losses of Rs. 495.53 crore compared to a loss of Rs 298.12 crore from a year ago, though for the fiscal year 2013, the airline reduced its losses to Rs 485.5 crore from Rs 1,236 crore in FY2012.

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Analysis: Jetihad partnership a big winner for the two airlines

by Devesh Agarwal

Jet's A330 fleet is expected to be deployed to Abu Dhabi

The 24% stake sale by Jet Airways to Abu Dhabi owned and based Etihad Airways is a bonanza for both the airlines.

For Jet Airways it gets a significant amount of cash it desperately needs to reduce part of its massive two billion dollar debt, since it is issuing fresh shares. Apart from this cash Jet gets from the stake sale, Etihad will also inject a further $220 million in to Jet.

The gulf carrier has already paid $70 million to purchase Jet Airways’ three pairs of Heathrow slots through a sale and lease back agreement, which Jet Airways will continue to operate flights to London utilising these slots, for now.

Etihad will also invest $150 million to gain a majority equity investment in Jet Airways’ frequent flyer program Jet Privilege, expected to be completed within the next six months. This is a major coup for the gulf carrier as it gets controlling access to the top frequent fliers in the country. Since Etihad is essentially owned by the rulers of Abu Dhabi just like all other major institutions, Jet Airways will also get access to low interest loans, estimated a 3% per annum, which it will use to retire high cost debt.

What does Etihad get in return? Much as the leadership at Jet or their many government supporters may deny, Etihad will get control of Jet Airways' international operations. As of now, the planned shareholding will be Naresh Goyal 51%, the public 25%, and Etihad 24%. Any future issue of shares or dilution of share-holding by Naresh Goyal will be offered on a basis "right of first refusal" to Etihad. To remain a publicly listed company, a 25% public shareholding is required.

I have been advocating a new name for Jet Airways on its 20th anniversary. Jetihad Airways.

Our analysis of Jetihad

The speed at which the bi-lateral air services agreement (ASA) with the United Arab Emirates, excluding Dubai, was re-negotiated shows the sheer political muscle of the promoters of Jet Airways. In the blink of the eye, without Etihad even asking for it, the capacity between India and Abu Dhabi has been almost quadrupled. Anyone who believes this is not a direct quid pro-quo is naively denuding themselves.

The main beneficiary of this capacity increase will be Jet Airways from India and Etihad from Abu Dhabi. Jet Airways, very recently, sought additional rights of 41,600 seats a week from 23 Indian cities to Abu Dhabi for the next three years. That’s more than the 26,600 seats a week available for all Indian and Abu Dhabi-based airlines put together to fly between the two countries. The capacity from Abu Dhabi is of course, reserved for Etihad.

Based on the seat capacity requests Jet will more than double its share from 31% to 76%, as will Etihad in reverse.

Market share of Indian carriers to Abu Dhabi

The ASA also allows for gauge-change and code-sharing and this will allow Jet to leverage its domestic network and ferry passengers from India to Abu Dhabi on a combination of narrow bodies from smaller cities and wide-bodies from larger cities, which will then be fed on to Etihad's network of 87 passenger and cargo destinations in 55 countries served by its 66 aircraft operating 1,300 flight per week. This will allow Etihad to leap-frog ahead of fellow UAE carrier and competitor Emirates airline, in one fell swoop. Emirates already deploys more than 12% of its capacity to India, and is asking for a doubling of its 50,000+ existing weekly seat capacity.

India's west bound international traffic is growing at 10% per year and is expected to reach 40 million from the current 28 million soon. Assuming Jet will try and target about 10% market share, but since Etihad will carry passengers the longer distance from Abu Dhabi to destinations in Europe, North America, Africa, and South America, expect that airline to earn bulk of the Indian passengers' money, not Jet.

The partnership with Etihad will also allow Jet to lease many of its wide-bodies to the carrier who needs aircraft capacity right now, as well as utilise the large Boeing 777 fleet, much of which has spent its life being leased to other carriers. With the rulers of Abu Dhbai owning Etihad, Jet can use its A330 fleet to ferry passengers from India to Abu Dhabi and onwards using fifth and seventh freedom rights.

With Etihad covering the west, will Jet be allowed to focus east to Japan and Korea? What about down under to Australia? One cannot say for certain at this moment in time.

On the alliance front, Jet can now kiss goodbye to the Star Alliance which is vehemently opposed to Gulf carriers, and this is now further compounded with the growing size and clout of existing member Turkish airlines. Turkey wants to construct the world's largest airport.

Apart from traffic and operations, the main question still remains, who will head the board of directors and who all will run it operationally? We can expect the nominal executive leadership to remain with Jet, but all effective operational control will pass to Etihad despite rules in India requiring management to be Indian. These are all very easily "handleable". The middle management of Jet faces significant uncertainty on their future career prospect.

Jet Airways - the powerful Gemini

The Jetihad deal and the events surrounding it are a revealing insight to the enormity of the political clout commanded by Jet Airways and its promoter Mr. Naresh Goyal, a former travel agent. Goyal's influence is widely regarded as the catalyst for forming aviation and financial policy, many times contrary to the national interests of India, but well suited to the needs of private airlines like Jet Airways. This included a policy preventing foreign airlines to invest in Indian carriers, which was done to block the Tatas and Singapore Airlines starting a domestic Indian airline.

He is also believed to be responsible for passage of rules requiring Indian carriers to operate a minimum five years and have a fleet of 20 aircraft, before they could fly internationally. Again to benefit a very nascent Jet Airways at that time, but one which allowed foreign carriers, not required to follow these rules, to come in to India and establish market share, while Indian carriers could only look on.

Till about February last year, Jet Airways and its subsidiary JetLite (the former Air Sahara) were the largest airline in India, both domestic and international. Then upstart and irreverent low cost carrier, IndiGo, usurped the crown of largest domestic carrier. There were some months when, even the hopelessly inefficient Air India, topped Jet Airways in the market share standing. Losses mounted, debt ballooned.

Also, influenced by the imploding Kingfisher Airlines and its promoter and Member of Parliament, Dr. Vijay Mallya, the Indian government started talking about liberalising the airline sector by permitting foreign airlines to invest up to 49% stake in Indian carriers.

When he saw the writing on the wall, in a very smart move, Goyal switched tact, leveraged his middle-east connections, and commenced negotiations with Etihad, which, after many a false start, has culminated in the deal at hand.

Given the history of Jet Airways and its promoters over the last 20+ years, one has to take a huge pinch of salt to digest Goyal's statement

“I would like to thank the Government of India, especially the Ministries of Civil Aviation, Commerce and Industry, and Finance, for having the foresight to introduce the historic reform of allowing foreign direct investment into civil aviation in India. Infusion of FDI in the domestic sector will result in the improvement of the economics of aviation, grow traffic at our airports and create job opportunities."

India - UAE (Abu Dhabi) Bi-lateral air services capacity

Normally negotiations of bilateral air services agreements take years, and are normally commenced only after existing capacity is exhausted.

In 2011, the Comptroller and Auditor General of India, indicted the government and aviation ministry officials for their liberal policy of doling out bilateral seat capacity like candy. The CAG even suggested a roll-back of the capacities. Yet, barely 18 months after that report, political clout is amply demonstrated by the haste with which the Indian government enhanced its ASA with Abu Dhabi.

This despite the vehement objections of the operators of Delhi, Mumbai, Bangalore, and Hyderabad airports, and virtually all airlines, who fear their expensive investments will be now rendered uncompetitive, as another hub is created in Abu Dhabi, with Jet Airways ferrying passengers from even the smallest cities to the Emirate.

Even a strong letter, against expanding capacity, by former minister Dinesh Trivedi seems to have had no effect.

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